Walton Advanced Engineering, Inc. (8110) AI Stock Analysis

Walton Advanced Engineering, Inc.

(TWSE:8110)

Select Model

Rating:56Neutral

Price Target:TWD 35.00▼(-8.85% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by weak financial performance and a bearish technical trend, especially the sharp deterioration in free cash flow and negative EBIT. Low valuation and a strong dividend yield provide meaningful support, while oversold momentum indicators offer limited secondary support.

Positive Factors

Balance Sheet DeleveragingA substantial reduction in debt-to-equity strengthens financial flexibility and improves resilience through industry cycles. Lower leverage can reduce balance-sheet pressure, preserve capacity for investment, and give the company more room to manage demand volatility over the coming quarters.

Negative Factors

Revenue VolatilityThe sharp 2025 revenue decline, following weakness in 2023 and only modest growth in 2024, indicates an unstable top-line trajectory. Continued volatility would make capacity planning, operating leverage, and consistent earnings growth more difficult over the next several quarters.

Walton Advanced Engineering, Inc. (8110) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 19.84B
Dividend Yield: 3.89%
Average Volume (3M): 5.48M
Price to Earnings (P/E): 10.4
Beta (1Y): 1.54
Revenue Growth: 11.36%
EPS Growth: 213.16%
Country: TW
Employees: 3,416
Sector: General
Sector Strength: 55
Industry: Semiconductors

Walton Advanced Engineering, Inc. Business Overview & Revenue Model

Company Description

Walton Advanced Engineering, Inc., founded in Kaohsiung, Taiwan, in 1995, specializes in providing memory assembly and testing solutions to both domestic and international clients. The company offers a comprehensive suite of turnkey services, includi...

Walton Advanced Engineering, Inc. Financial Statement Overview

Summary

The balance sheet is a relative strength, supported by lower debt, higher equity, and a 0.20 debt-to-equity ratio. However, declining revenue, negative EBIT, thin gross margins, and a sharp free-cash-flow decline materially weaken financial quality.

Income Statement

48Neutral

Balance Sheet

78Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.78B	7.32B	7.86B	7.28B	9.51B	8.12B
Gross Profit	621.59M	201.59M	498.16M	132.06M	841.93M	449.33M
EBITDA	2.73B	1.44B	2.09B	1.90B	2.49B	2.19B
Net Income	2.80B	1.25B	134.27M	-6.81M	156.10M	118.73M
Balance Sheet
Total Assets	23.53B	16.53B	16.17B	17.30B	19.32B	21.52B
Cash, Cash Equivalents and Short-Term Investments	4.71B	3.82B	3.53B	3.20B	3.92B	4.30B
Total Debt	1.73B	2.42B	3.84B	4.59B	6.67B	7.68B
Total Liabilities	4.27B	4.26B	5.61B	6.68B	9.08B	10.28B
Stockholders Equity	19.26B	12.27B	10.43B	10.53B	10.04B	10.94B
Cash Flow
Free Cash Flow	-524.58M	59.95M	1.74B	1.26B	1.06B	-1.74B
Operating Cash Flow	980.41M	1.39B	2.12B	2.62B	2.16B	694.90M
Investing Cash Flow	-433.25M	-55.27M	-800.71M	-508.22M	-662.71M	-3.15B
Financing Cash Flow	-930.65M	-829.15M	-988.83M	-2.23B	-1.31B	2.85B

Walton Advanced Engineering, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8110 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8086	63Neutral	TWD 19.63B	20.36	―	1.61%	38.98%	147.17%
TW:3265	58Neutral	TWD 21.46B	23.62	―	2.47%	15.38%	34.04%
TW:8110	56Neutral	TWD 18.96B	10.37	―	3.89%	11.36%	213.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5425	52Neutral	TWD 19.66B	23.92	―	2.47%	7.28%	85.43%
TW:3707	38Underperform	TWD 24.11B	-51.85	―	―	22.70%	38.31%
TW:2340	30Underperform	TWD 17.77B	-23.63	―	―	5.05%	34.85%

* General Sector Average

Performance Comparison

TW:8110 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8110	Walton Advanced Engineering, Inc.	38.40	1.51	4.08%
TW:2340	Taiwan-Asia Semiconductor Corporation	42.30	17.25	68.86%
TW:3265	Winstek Semiconductor Co. Ltd.	166.00	72.87	78.25%
TW:3707	Episil Technologies Inc.	60.90	12.65	26.22%
TW:5425	Taiwan Semiconductor Co., Ltd.	81.70	27.72	51.34%
TW:8086	Advanced Wireless Semiconductor Co.	104.50	0.01	<0.01%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Walton Advanced Engineering, Inc. AI Stock Analysis